Solstice Advanced Materials said July 6 it will acquire Element Solutions in a cash-and-stock deal valued at about $14.5 billion, including debt. The agreement gives Element shareholders $10.00 in cash and 0.500 Solstice shares for each share they own, implying about $50.10 per Element share and a premium of roughly 15% to Element’s July 2 closing price.
On a combined basis, the two companies said they would have about $6.8 billion in full-year 2025 net sales and a 26% adjusted EBITDA margin, including run-rate synergies. Solstice said the deal is expected to be accretive to adjusted EPS in the first year after closing.
Solstice said the combination is expected to generate more than $180 million in net synergies by the third year after close. It also forecast medium-term revenue growth of mid* to high-single digits annually, adjusted EBITDA growth of high-single digits to low-double digits, and cash conversion of about 75%.
The company said net leverage would be about 3.5 times at closing and is expected to fall below 3 times adjusted EBITDA within 18 months. Solstice also said it plans to keep a target leverage range of 2.0 to 3.0 times adjusted EBITDA and continue its quarterly dividend policy.
Element shareholders are expected to own about 44% of the combined company after closing. Solstice said the transaction is expected to close in the first half of 2027.
To fund the cash portion, Solstice said it has secured a fully committed $4.7 billion bridge financing package from Goldman Sachs, which it plans to replace with permanent debt financing, along with cash on hand. As a result of these announcements, the company's shares have moved -1.6% on the market, and are now trading at a price of $42.94. For the full picture, make sure to review Element Solutions Inc's 8-K report.
